Numbers from the Federal Deposit Insurance Corporation show a steady start to 2025 by Wisconsin banks.
Residential real estate lending (8.67%), farm lending (8.95%), and commercial lending (5%) all increased over the prior year. Deposits increased year over year (5.63%). The Q1 2025 net interest margin increased (3.33%) from the prior quarter (3.22%) and prior year (3.10%). Wisconsin banks remain well capitalized.
Farm lending increased quarter over quarter (8.78%), which extended the pace year over year (8.95%) as banks continue to help farmers with their operational needs.
“The increase in farm and commercial lending continued through the first quarter. The data also reflects that Wisconsin’s residential real estate market continues to be competitive,” says Rose Oswald Poels, president and CEO of the Wisconsin Bankers Association. “Across all categories of lending, banks continue to monitor credit quality and work with struggling borrowers as Wisconsin banks remain well-positioned to continue to help meet the needs of their customers and communities.”
Other notable indicators include:
- Commercial lending slowed in growth slightly, quarter over quarter (2.43%) from the year-over-year (5%) increase as commercial customers adjust to the impacts of global economic challenges.
- Residential real estate loans increased year over year (8.67%) yet decreased quarter over quarter (-16.05%) as inventory remains limited and the marketplace is competitive from non-traditional lenders.
- Assets in nonaccrual status increased both quarter over quarter (8.74%) and year over year (2.20%) as ongoing inflation and the high cost of living impact borrowers.
